What To Expect From Microsoft Earnings (NASDAQ: MSFT), Stock Down 5% Pre-Market

Microsoft Corporation (NASDAQ: MSFT) is scheduled to release its quarterly earnings report after the bell on Wednesday. Analysts are anticipating earnings per share (EPS) of $3.13 and total revenue around $68.82 billion for the quarter.

In its previous quarterly earnings announcement on October 30, 2024, Microsoft reported an EPS of $3.30 with revenue totalling $65.58 billion, exceeding market expectations. The company has a recent history of beats on both the top and bottom lines, with the most recent period's 6.13% beat on EPS the largest of the past year.

Shareholder returns continue to be a priority, as evidenced by the quarterly dividend of $0.83 per share. This dividend is scheduled for distribution on March 13, 2025, and has an associated ex-dividend date of February 20, 2025. This represents an annualized dividend of $3.32, resulting in a yield of approximately 0.75%.

Analyst sentiment towards Microsoft remains positive, with a consensus price target of $509 reflecting significant perceived upside from current price action. The low mark on the street of $420 also remains above the current price of $418.60, after a 5.7% decline in pre-market.

Institutional investors, including hedge funds, hold a significant majority of the company’s stock, accounting for 71.13% ownership. This underscores the institutional confidence in Microsoft's strategic direction and long-term growth potential.